Can I retire at age 40 with 875,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator

About Your Retirement ?

Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:

Portfolio ?

% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $875,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%18%
1 years$72,257$71,613$70,985$70,372$69,774$67,513
2 years$35,771$35,104$34,459$33,833$33,226$30,969
3 years$23,610$22,941$22,297$21,677$21,080$18,899
4 years$17,531$16,864$16,227$15,617$15,034$12,945
5 years$13,885$13,222$12,593$11,995$11,429$9,437
6 years$11,455$10,797$10,177$9,593$9,043$7,150
7 years$9,719$9,067$8,457$7,887$7,355$5,561
8 years$8,419$7,772$7,172$6,616$6,101$4,405
9 years$7,407$6,767$6,177$5,635$5,138$3,537
10 years$6,599$5,965$5,385$4,858$4,378$2,870
11 years$5,938$5,310$4,741$4,228$3,765$2,348
12 years$5,387$4,766$4,208$3,708$3,263$1,933
13 years$4,922$4,307$3,759$3,274$2,845$1,599
14 years$4,523$3,915$3,378$2,906$2,494$1,329
15 years$4,178$3,576$3,050$2,592$2,196$1,107
16 years$3,877$3,281$2,765$2,321$1,941$926
17 years$3,611$3,022$2,516$2,085$1,721$775
18 years$3,375$2,792$2,297$1,879$1,530$651
19 years$3,164$2,588$2,103$1,698$1,364$547
20 years$2,974$2,405$1,930$1,538$1,218$460
21 years$2,802$2,240$1,775$1,396$1,090$388
22 years$2,647$2,091$1,636$1,269$977$327
23 years$2,505$1,956$1,510$1,156$877$276
24 years$2,375$1,832$1,397$1,054$788$233
25 years$2,256$1,720$1,294$963$709$197
26 years$2,146$1,616$1,200$880$639$167
27 years$2,044$1,521$1,114$806$576$141
28 years$1,950$1,433$1,036$738$520$119
29 years$1,863$1,352$964$677$469$101
30 years$1,781$1,277$898$621$424$85
31 years$1,705$1,207$837$571$383$72
32 years$1,634$1,142$781$524$347$61
33 years$1,567$1,082$729$482$314$52
34 years$1,504$1,025$681$444$284$44
35 years$1,445$972$637$408$257$37
36 years$1,390$923$596$376$233$31
37 years$1,337$877$558$347$211$27
38 years$1,288$833$522$319$192$23
39 years$1,241$792$489$295$174$19
40 years$1,196$754$459$272$158$16
41 years$1,154$717$430$251$143$14
42 years$1,114$683$403$231$130$12
43 years$1,076$651$379$214$118$10
44 years$1,040$620$355$197$107$8
45 years$1,005$592$334$182$97$7
46 years$972$564$313$168$88$6
47 years$941$539$294$155$80$5
48 years$911$514$277$144$73$4
49 years$882$491$260$133$66$4
50 years$854$469$244$123$60$3

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $875,000, adding $3,340 every year, while hoping to spend $37,233 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 37/48/15 Blend
39$875,000$875,000$875,000$875,000
40$967,695$921,320$907,758$998,968
41$1,026,784$926,849$898,552$1,027,272
42$1,090,653$931,401$887,790$1,054,020
43$1,159,749$934,889$875,380$1,082,111
44$1,234,565$937,220$861,227$1,111,684
45$1,315,642$938,296$845,230$1,142,895
46$1,403,577$938,012$827,284$1,175,919
47$1,499,024$936,257$807,281$1,210,948
48$1,602,703$932,912$785,103$1,248,199
49$1,715,408$927,853$760,633$1,287,915
50$1,838,008$920,947$733,743$1,330,365
51$1,971,465$912,053$704,303$1,375,847
52$2,116,832$901,022$672,175$1,424,697
53$2,275,271$887,694$637,215$1,477,285
54$2,448,061$871,903$599,274$1,534,026
55$2,636,608$853,471$558,194$1,595,378
56$2,842,460$832,209$513,812$1,661,854
57$3,067,322$807,918$465,956$1,734,021
58$3,313,070$780,388$414,446$1,812,510
59$3,581,770$749,394$359,097$1,898,024
60$3,875,697$714,700$299,713$1,991,339
61$4,197,355$676,057$236,091$2,093,320
62$4,549,501$633,200$168,016$2,204,926
63$4,935,173$585,850$95,267$2,327,219
64$5,357,715$533,711$17,613$2,461,378
65$5,820,809$476,470$0$2,608,710
66$6,328,512$413,797$0$2,781,109
67$6,885,291$345,344$0$2,973,422
68$7,496,066$270,742$0$3,184,648
69$8,166,258$189,601$0$3,416,800
70$8,901,835$101,510$0$3,672,105
71$9,709,374$6,036$0$3,953,026
72$10,596,118$0$0$4,262,283
73$11,570,045$0$0$4,654,272
74$12,639,947$0$0$5,088,519
75$13,815,506$0$0$5,565,785
76$15,107,389$0$0$6,090,416
77$16,527,350$0$0$6,667,203
78$18,088,336$0$0$7,301,422
79$19,804,611$0$0$7,998,888
80$21,691,891$0$0$8,766,005
81$23,767,491$0$0$9,609,833
82$26,050,487$0$0$10,538,146
83$28,561,898$0$0$11,559,513
84$31,324,883$0$0$12,683,374
85$34,364,956$0$0$13,920,129
86$37,710,233$0$0$15,281,239
87$41,391,689$0$0$16,779,332
88$45,443,456$0$0$18,428,321
89$49,903,144$0$0$20,243,539
90$54,812,189$0$0$22,241,878
91$60,216,253$0$0$24,441,953
92$66,165,649$0$0$26,864,275
93$72,715,813$0$0$29,531,445
94$79,927,835$0$0$32,468,367
95$87,869,025$0$0$35,702,484
96$96,613,556$0$0$39,264,034
97$106,243,159$0$0$43,186,339
98$116,847,895$0$0$47,506,117
99$128,527,003$0$0$52,263,827
100$141,389,841$0$0$57,504,054